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Under plans to reward homeowners who sell energy to power utilities, the Department of Energy and Climate Change this week announced that the price to be paid would be 41p/kWh, a far higher level than expected.

The department said this level of feed-in-tariff could mean that a photovoltaic (PV) panel could generate 拢900 a year if all its electricity were sold.

David Strong, chair of the Energy Efficiency Partnership for Homes, said: 鈥淭his changes the renewables industry from being marginal to one with a strong business driver.鈥�

Companies that supply or fit renewable energy generators such as Eaga and SIG are set to benefit from the tariff; shares in Eaga rose 8% after the announcement.

Incentivisation programmes across Europe have proved to be a massive success

Paul Roche, SIG

SIG estimates that the market for PV alone could be worth 拢27bn. Paul Roche, director of SIG鈥檚 Sustainable Solutions arm, said: 鈥淚t is great news for the construction industry. Incentivisation programmes across Europe, especially Germany, have proved to be a massive success and provided a boost to the roofing sectors.鈥�

The announcement gave a range of feed-in-tariff prices for different technologies, as well as committing the government to linking the price to inflation. The government will also consult on introducing a system for paying developers to produce heat through renewable technology.

Neil May, chair of the Good Homes Alliance, said there was a danger the move would distract housebuilders from constructing energy-efficient buildings. He said: 鈥淭he truth is it allows builders to take their eye off the ball 鈥� which should be about getting sustainable buildings.鈥�